M/S Devi Bai vs. The Union Of INDIA
Held
The Court held that the petitioner would be unable to continue its business without GST registration, leading to a deprivation of livelihood and a violation of the right to life and liberty under Article 21 of the Constitution. The Court also noted that restoring the GST registration would be in the interest of the respondent-department as it facilitates GST collection. Consequently, the orders dated March 16, 2021 (cancellation of registration) and September 13, 2022 (dismissal of appeal) were set aside. The petitioner was granted liberty to file an appeal against the cancellation of GST registration before the competent authority within fifteen days from the date of the order. Upon filing, the appeal was to be considered and decided on all aspects in accordance with law, expressly excluding the bar of limitation for preferring the appeal. The Court did not expressly leave any issue undecided.
Facts
The petitioner, M/s Devi Bai, a registered GST dealer, had its GST registration cancelled by the competent authority on March 16, 2021. The petitioner filed an appeal against this cancellation on July 18, 2022, which was dismissed on September 13, 2022, as being time-barred by 18 days. The statutory period for filing an appeal against GST registration cancellation is 30 days, extendable by another 30 days. The petitioner argued that the dismissal for hyper-technical reasons left it remediless, impacting its livelihood and violating Article 21 of the Constitution. The respondents did not dispute the applicability of a previous High Court judgment to the present case.
Key Issues
1. Whether the appeal against the cancellation of GST registration, filed beyond the prescribed period of limitation, should be considered on merits, considering the impact on the petitioner's livelihood and fundamental rights? Petitioner's Contention: The petitioner argued that the dismissal of its appeal on hyper-technical grounds of limitation has left it without a remedy, preventing it from conducting business and earning a livelihood. This, it contended, violates its right to life and liberty under Article 21 of the Constitution of India. The petitioner relied on the High Court's judgment in Poonam Chand Saran vs. Union of India & Ors. and urged the court to direct the competent authority to decide the appeal on its merits. Respondent's Contention: The respondent opposed the petitioner's submissions but could not dispute that the judgment in Poonam Chand Saran covered the present controversy.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 14797/2022 M/s Devi Bai, Through Proprietor Devi Bai, Age 55 Years, Address - Bihariganj, Pindwara, Sirohi, Rajasthan. ----Petitioner Versus
The Union Of India, Through Secretary, Ministry Of Finance, Department Of Revenue, North Block, New Delhi - 110001. 2. The Gst Council, Through The Chairman, Secretariat, 5Th Floor, Tower Iind, Jeevan Bharati Building, Janpath Road, Cannaughat Palace, New Delhi - 110001. 3. The Superintendent Cgst Range - Xx, Circle - Sirohi, Ward - 3, Abu Road District Sirohi, Rajasthan.
The Additional Commissioner (Appeals), Central Goods And Service Tax, Jodhpur, G-105, New Jodhpur Industrial Area Jodhpur, 342003. 5. The State Commissioner (Gst), Commercial Taxes Department, Kar Bhawan, Tilak Marg, Jaipur - 302005. ----Respondents For Petitioner(s) : Mr. Parhlad Singh For Respondent(s) : Mr. Kuldeep Vaishnav HON'BLE MR. JUSTICE SANDEEP MEHTA HON'BLE MR. JUSTICE KULDEEP MATHUR Order 20/10/2022 With consent of learned counsel for parties, the writ petition is being heard and finally decided today itself. The petitioner is a dealer registered under the GST Act. Its
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